Chancellor Philip Hammond announced in the Budget on Wednesday that the North of Tyne devolution deal, worth an initial £600m and months in the planning, will be officially launched this week.

It is a major announcement for the North East and means that three councils serving communities north of the River Tyne will join together to create a new North of Tyne Combined Authority, which will be led by a regional mayor to be elected in 2019.

Those councils are Northumberland County Council, North Tyneside Council and Newcastle City Council.

Formal agreement to the deal from the councils involved is expected to be announced this week, and includes funding of £600 million for the new authority paid over 30 years.

The creation of the North of Tyne Combined Authority raises questions about future funding for the councils not involved, including Gateshead, Sunderland, South Tyneside and County Durham.

Here, we take you through the complexities of what has been announced so far, and we will bring you the latest updates as the councils move towards formal agreement.

What will the deal mean for education?

The North of Tyne will launch an Education Improvement Challenge, a programme to raise standards across the area.

It was carried out in London in 2003 and was credited by some education experts as critical for turning around schools.

This will be the first time it has been done outside of the capital.

Here’s a video explainer with more:

13:58Sean Seddon

When will we get a new mayor?

Elections for the new Mayor of the North of Tyne region will take place in May 2019.

An interim mayor will be appointed in summer 2018 until those elections take place.

We don’t know who’s going to run yet but it promises to be one of the most interesting political races in years.

12:40Sean Seddon

Could houses be built more quickly?

The establishment of a Housing and Land Board will allow the combined authority to acquire and dispose of land, agree a joint housing strategy and give the mayor the ability to issue compulsory purchase orders.

It’s hoped these powers will lead to more houses being built and getting it done more quickly.

12:32KEY EVENT

Will we be getting more money?

Yes - the government has agreed to provide £600m over 30 years but the final sum could be a lot more.

According to the Treasury, the deal will boost the local economy by £1.1 billion and attract £2.1 billion in private investment.

12:26Sean Seddon

Benefits of a new mayor

We’ve had a look at what benefits we could see by having a regional mayor.

But will those south of the Tyne be missing out?

12:09Sean Seddon

Doubts over deal expressed by Liberal Democrats

Newcastle’s Liberal Democrats have shown some doubts about the deal and what it will achieve.

In a statement they said:

The region’s political establishment has failed to make a notable success of the North East Combined Authority. We are sceptical that this new structure will enable Newcastle, North Tyneside, and Northumberland to keep pace with the likes of Manchester and Birmingham.

It lacks the more substantive powers on offer to other city-regions in respect of health and social care, and transport that look set to make a big difference to the growth and success of major city-regions like Greater Manchester and the West Midlands.

This Deal makes it more likely that the North East will compete with itself rather than the rest of the country, as North of Tyne, the South of Tyne rump of NECA, and Tees Valley vie to secure investment.

The Lib Dems are committed to the principle of greater devolution to the region, but we believe devolution be most effective when it is given the powers to realise our region’s true potential.

We will do what we can to scrutinise the Deal and to hold its office holders to account, and want to see Opposition representatives leading the new authority’s scrutiny function.

We hope that over time the structure and scope of the Deal can be expanded if progress is achieved.

12:00Sean Seddon

South of Tyne not included in deal

Andrew Hodgson from the LEP with some strong words for the south of Tyne authorities.

Says they need to “think very hard” about their decision to not to go ahead with devolution.

11:54KEY EVENT

Sense of relief as deal is signed

And there it is - the North of Devolution is signed.

This devolution process started back in 2004.

It has taken an awfully long time to get to this photo opportunity. The sense of relief in the room from some is palpable.

Devolution deal signed by council leaders and MPs

11:46Sean Seddon

'Fighting fit for Brexit'

Northumberland County Council leader, Peter Jackson, has spoken about how the deal will get the region fighting fit for Brexit.

Peter Jackson, Nick Forbes and Norma Redfearn

He also says he wants this to be the start and wants more devolution to follow.

11:36Sean Seddon

Devolution deal reached 'at last'

The mayor of North Tyneside Norma Redfearn has spoken about the devolution deal being reached ‘at last’.

11:28Sean Seddon

Aim to create jobs and growth

Newcastle City Council leader Nick Forbes says the core aim of the deal is to create jobs and put the region at the centre of the modern digital economy.

The North of Tyne has also been selected as the first area to pilot a new scheme to boost the rural economy. That’s good news for Northumberland.

10:55Sean Seddon

What will the new North of Tyne Combined Authority do?

The government has devolved a number of new powers to the North of Tyne Combined Authority (NTCA) which are all about boosting the economy, building houses, getting people into work and improving education.

The detail is broken down in sections below but, in broad terms, the NTCA is all about tackling systemic issues like housing shortages and unemployment in a more joined up way than has been possible before.

North of Tyne devolution

It will have substantial powers and responsibilities which, until now, have been exercised by government officials in Whitehall on our behalf.

10:49Sean Seddon

Northern Powerhouse minister in Newcastle to launch deal

The changes brought by the devolution deal has been summarised in this document.

Jake Berry MP, Minister for the Northern Powerhouse and Local Growth, and Andrew Jones MP, Exchequer Secretary to the Treasury, are in Newcastle today to officially launch the deal.

10:36KEY EVENT

What does this devolution deal change?

The North of Tyne devolution agreement will create a new combined authority comprised of Newcastle City Council, North Tyneside Council and Northumberland County Council.

That sounds a bit dull but it’s actually a massive shake-up to how we’re governed and brings the North of Tyne into line with places like Manchester and Liverpool which have already pressed ahead with devolution.

It won’t take any powers away from the councils, instead adopting powers which the region has never had before.

Working alongside the three council leaders will be a North of Tyne Mayor, an elected figure who will represent the new combined authority.

10:30KEY EVENT

Devolution deal launched today

It’s official - the North of Tyne has agreed a devolution deal with the government which will see the introduction of an elected mayor and a whole raft of new powers for the region.

It’s a big deal - this is the biggest change to how the region is run in decades and it comes with new powers and money.

The announcement raises a lot of questions: When will we get a mayor? What will the new North of Tyne authority do? Will this create jobs and boost housing?

We’re finding out more as the devolution deal is launched today.

10:22Kathryn Riddell

North of Tyne mayor on the cards

Another key announcement for the North East was the creation of a “North of Tyne” devolution deal.

It means that the three councils serving communities north of the Tyne, Northumberland, Newcastle and North Tyneside, will join forces to create a new combined authority to be chaired by an elected regional mayor, to be elected in 2019.

Who could be the first North East Mayor?

The deal, which still requires formal agreement from the councils involved, includes funding of £600 million for the new authority paid over 30 years, designed to improve the economy.

And the Treasury says the mayor will have “powers over important economic levers including planning and skills”.

10:07KEY EVENT

More funding after devolution deal?

In practice, there is likely to be more funding for the North of Tyne, as the Government is funnelling money to regions with mayors.

For example, Mr Hammond announced that regional mayors will automatically get money from a new £1.7 billion transport fund, with £59 million going to Tees Valley, which elected a mayor last year.

Other regions, by contrast, will have to submit bids for a share of the cash.

Nick Brown (Image: Newcastle Chronicle)

Newcastle East MP Nick Brown said: “The money announced as part of the North of Tyne Devolution Deal over a thirty year period does not match the amount cut by the Government from these areas since 2010.

“It does not deliver the fair funding needed for local government and our local public services and is not an end to the unfair treatment of our region by the Tory Government.”

Devolution deal to be launched this week

Chancellor Philip Hammond announced in the Budget on Wednesday that the North of Tyne devolution deal, worth an initial £600m and months in the planning, will be officially launched this week.

It is a major announcement for the North East and means that three councils serving communities north of the River Tyne will join together to create a new North of Tyne Combined Authority, which will be led by a regional mayor to be elected in 2019.

Those councils are Northumberland County Council, North Tyneside Council and Newcastle City Council.

Devo

What is the North of Tyne devo deal?

This week’s announcement means that Newcastle, North Tyneside and Northumberland councils will ultimately come together to form a new combined authority which will include an elected mayor, to be chosen in 2019.

The three councils decided to go it alone after negotiations for an authority encompassing all seven North East councils collapsed last year.

As well as £600m over 30 years, the government say the deal will include “powers over important economic levers including planning and skills”.

The full scale of the deal will be revealed soon, but it represents the biggest shake-up to local government in the North East for decades.